How to set up new users without getting an error about outgoing server having problems with authentication?
First of all, make sure you fill correct username and password for the SMTP server you are using in Mail Settings. Remember about Firefox that automatically puts your username and password in MailHost. After you faithfully press Save – mail server refuses to authenticate as it doesn’t require authentication! So, erase your username and password for MailHost in ZMI or in Plone Control Panel and update settings and everything should be fine.
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